NEW DELHI: India's foreign investment approval authority may take a call on proposals of 10 foreign drug makers and investors to buy stakes in local drug makers at its meeting on Friday, many of which have been pending for several months.

An inter-ministerial panel had finalised the new FDI guidelines for the pharmaceuticals industry in July, a move that was expected to clear the way for more than Rs 3,000-crore worth of FDI proposals. The new guidelines are awaiting approval of the Prime Minister's Office.

The inter-ministerial panel suggested conditions such as commitment by the buyer to manufacture and make available essential drugs post acquisition for five years and also to increase R&D expenditure by 5% for diseases prevalent in India to allow foreign firms buy Indian companies. It left it to DIPP to decide if the riders be imposed for acquisition of more than 49% or management control.

But the FIPB meeting that was held three days later decided to put off FDI proposals in pharmaceuticals industry after a department of industrial policy and promotion (DIPP) representative told the board that commerce minister Anand Sharma has sought the same.

The 10 proposals include those of Pfizer, Fresenius Kabi and B Braun. Some applications such as Mauritius-based Ambrose Pvt Ltd's proposal to buy 40% stake in Sutures India for Rs 199 crore and Spain's Chemo Group's offer to buy a 100% stake in Ordain Healthcare Global for Rs 58 crore have been pending since March.

Foreign investment in pharmaceuticals came to a standstill last year when the government decided to impose certain conditions after a spate of buyouts of Indian firms by multinationals prompted the health ministry, some parliamentarians and section of the industry to express fears that such deals would threaten availability of low-cost medicines for Indians and increase dependence on costly imported drugs.

An inter-ministerial group led by the prime minister last year decided to route FDI proposals in the pharmaceuticals sector through competition watchdog Competition Commission of India. But both the commerce ministry, which houses DIPP, and health ministry demanded such proposals be vetted by FIPB. Also, while the health ministry wanted prior clearance a must for all FDI deals, the department of pharmaceuticals argued it should be imposed only when foreign companies took majority stake or management control. That was when a new panel was formed.